BITCOIN is set to rocket in value due to the power of Distributed Ledger Technology (DLT), a bitcoin expert believes.

Bitcoin’s potential to revolutionise the world for the better is greater than originally envisaged when bitcoin was born ten years ago, believes Juan Villaverde, an economist and cryptocurrency analyst at Weiss Ratings.

The bitcoin expert believes DLTs will have a massive part to play in the future of money.

In its basic form, a distributed ledger is a database held and updated independently by each member, or node, of an enormous network.

The distribution is unique – records are not communicated to various nodes by a central authority but are instead independently constructed and held by every node.

Bitcoin price forecast: An analyst thinks DLTs will play a massive part in the future of money (Image: Getty)

Scenario One: Decentralised DLT

Public open ledgers and their native cryptocurrencies like bitcoin begin to replace the fiat currency system, and a growing share of the public transitions from government-issued currency to public cryptocurrencies.

Although initially resisted by governments, they eventually they accept the new reality and recognise these new forms of money as legal tender.

A select group of cryptocurrencies becomes dominant, thanks to superior technology, the most practical applications and the broadest mainstream acceptance.

As to which scenario is the more likely, Mr Villaverde said: “My guess is that, for now at least, we could wind up with an unholy mix of both. But in the longer term, decentralised DLT will always have two major advantages: